Sunstone Hotel Investors (NYSE:SHO) Sees Large Volume Increase – Still a Buy?

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO) saw strong trading volume on Monday . 2,372,441 shares were traded during mid-day trading, an increase of 45% from the previous session’s volume of 1,635,559 shares.The stock last traded at $12.14 and had previously closed at $11.79.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Jefferies Financial Group raised their target price on Sunstone Hotel Investors from $10.00 to $12.00 and gave the company a “hold” rating in a research report on Thursday, January 2nd. Wells Fargo & Company lifted their price objective on shares of Sunstone Hotel Investors from $11.00 to $13.00 and gave the stock an “equal weight” rating in a research report on Monday, December 9th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $12.17.

Sunstone Hotel Investors Stock Up 0.2 %

The company has a debt-to-equity ratio of 0.44, a quick ratio of 2.98 and a current ratio of 2.98. The firm has a market capitalization of $2.43 billion, a P/E ratio of 15.92, a PEG ratio of 6.45 and a beta of 1.21. The stock has a 50 day moving average of $11.32 and a 200-day moving average of $10.62.

Sunstone Hotel Investors (NYSE:SHO) last posted its quarterly earnings results on Tuesday, November 12th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.02). Sunstone Hotel Investors had a net margin of 18.61% and a return on equity of 9.04%. The business had revenue of $226.40 million during the quarter, compared to the consensus estimate of $224.61 million. During the same period last year, the firm earned $0.23 EPS. The business’s revenue for the quarter was down 8.6% on a year-over-year basis. Research analysts predict that Sunstone Hotel Investors, Inc. will post 0.79 earnings per share for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Tuesday, December 31st will be issued a dividend of $0.09 per share. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $0.36 dividend on an annualized basis and a yield of 2.98%. Sunstone Hotel Investors’s dividend payout ratio (DPR) is 44.74%.

Institutional Investors Weigh In On Sunstone Hotel Investors

A number of institutional investors and hedge funds have recently modified their holdings of SHO. Federated Hermes Inc. bought a new stake in Sunstone Hotel Investors during the 2nd quarter worth approximately $34,000. GAMMA Investing LLC grew its position in shares of Sunstone Hotel Investors by 114.1% during the 4th quarter. GAMMA Investing LLC now owns 3,271 shares of the real estate investment trust’s stock valued at $39,000 after purchasing an additional 1,743 shares in the last quarter. Quarry LP raised its position in shares of Sunstone Hotel Investors by 584.1% in the second quarter. Quarry LP now owns 4,310 shares of the real estate investment trust’s stock worth $45,000 after buying an additional 3,680 shares in the last quarter. Harbor Capital Advisors Inc. bought a new stake in Sunstone Hotel Investors during the third quarter valued at $59,000. Finally, Mirae Asset Global Investments Co. Ltd. boosted its stake in Sunstone Hotel Investors by 34.8% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 7,510 shares of the real estate investment trust’s stock valued at $80,000 after buying an additional 1,937 shares during the period. 99.37% of the stock is owned by hedge funds and other institutional investors.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.